rozelle apartments€¦ · boasts over 200 miles of coastline, a strong commercial and sport...

OFFERING MEMORANDUM

A 10-unit multifamily community in Port Angeles, Washington

ROZELLE APARTMENTS

Table of ContentsINVESTMENT SUMMARY01

Ryan DiniusKidder MathewsSenior Vice [email protected]

Sid WarsinskeKidder MathewsSenior [email protected]

kiddermathews.com

Exclusively Offered by

PROPERTY OVERVIEW02

FINANCIAL ANALYSIS03

RENT COMPARABLES04

3OFFERING MEMORANDUM | THE MARTIN AT MEADOWDALE

Investment SummaryThe Offering

Investment Highlights

01

Rozelle Apartments | Offering Memorandum | Kidder Mathews 4

The Rozelle Apartments consists of 10 classic homes located in the heart of Port Angeles. Home to the natural wonders of the Olympic National Park, Clallam County attracted nearly 4 million visitors in 2016. The region boasts over 200 miles of coastline, a strong commercial and sport fishing industry, natural abundance in forestry jobs, and the Peninsula College which has three campus locations.

Originally constructed in 1955 and recently upgraded, this 100% occupied property provides spacious one and two-bedroom units with long-term tenants at below market rents. As the Puget Sound Region continues to grow, an incoming investor will be able to add value and increase their returns by bringing rents up to market levels. This opportunity allows for an attractive down payment, in which a Buyer can maximize their leverage and achieve more than a 12% cash-on-cash return after bringing the rents up to market. With a going-in CAP Rate of 7.5%, The Rozelle Apartments is an excellent opportunity to acquire a centrally located piece of real estate and achieve outstanding returns.

Investment Summary

Property Overview

PRICE $795,000

NOI $59,600

PRICE PER UNIT $79,500

CAP RATE 7.50%

ADDRESS 212 W Third Street, Port Angeles, WA 98362

UNITS 10

OCCUPANCY 100%

YEAR BUILT 1955 / 2017

NRSF ± 6,200

PARCEL # 56135


Investment Highlights

EXCELLENT LOCATION

Located in the heart of Port Angeles, just three blocks from dining, shopping, and grocers

EXCELLENT UNIT MIX

2 one-bedroom and 8 two-bedroom units

UNIT LAYOUT

Units averaging ± 620 square feet each with spacious layouts

VALUE-ADD INVESTMENT

10 quality homes with significant rental upside

AMPLE PARKING

On-site parking and ample on-street

PORT ANGELES

Port Angeles is the largest city in Clallam County, with a population of roughly 20,000 people


Property OverviewLocation Aerials / Maps

02


ROZELLE APARTMENTS

N

Port Angeles

W 3rd St

W 4th St

W 2nd St

W 2

nd S

t

S C

herr

y St

W 1st St


Amenities Map

1

1

SHOPPING1. Brown’s Outdoor Clothing Store

2. Port Angeles Baby Store

3. Necessities and Temptations

4. Patricia’s Pet Shop

5. Cowboy Country Apparel

6. Walgreens

7. North by Northwest Surf Co

8. Sears Hometown Store

9. Straight Music

10. Angeles Furniture Co

11. Harbor Freight

12. Auto Zone

13. Payless ShoesSourse

14. Aaron’s

15. Port Angeles Goodwill

EAT + DRINK1. Tendy’s Garden

2. Bella Italia

3. Sabai Thai

4. Fiesta Jalisco Mexican

5. Fresh Wok

6. Frugals

7. Gordy’s Pizza & Pasta

8. Kokopelli Grill

9. Little Devils Lunch box

10. Toga’s Soup House

11. Dynasty Restaurant

12. Turnip The Beet

13. Okasan Japanese Restaurant

14. Chestnut Cottage Restaurant

15. Golden Gate Chinese

16. The Cornerhouse Restaurant

17. Joshua’s Restaurant & Lounge

18. Smuggler’s Landing Restaurant

19. First Street Haven Restaurant

20. Shirley’s Cafe

21. Port Angeles CrabHouse

HEALTH & WELLNESS1. Anytime Fitness

2. Poser Yoga

3. Olympic Iyengar Yoga

4. Fitness West

5. Olympic Day Spa

6. La Bella Nails & Spa

7. Pure Elements Spa

8. Beauty & The Beach

GROCERY1. Safeway

2. McPhee’s Parkway Grocery

3. Country Aire Natural Foods

4. Good To Go Natural Grocery

5. Grandview Grocery

6. Fairmount Grocery

7. Lincoln Park Grocery

8. Gig Lots

PUGET SOUND

Port Angeles

ROZELLE APARTMENTS

W 8th St

S R

ace

St

E Lauridsen Blvd

E 5th St

E 8th St

W 12th St

BLACK BALLFERRY LINE

Marine Dr

S C

edar

St

S G

olf C

ourse R

d

23

4

56

7

8

9

10

1112

13 14

1516

17

1819

20

21

1

2

3

4

5 67

8

ARMORY SQUARE SHOPPING MALL

2 3

4

56

7

8

910

11 121314

15

1

2

3

6

5

1

7

8


Financial AnalysisRent Roll

Income & ExpensesPricing

03


Financial AnalysisRent Roll

UNIT UNIT TYPE NRSF ACTUAL RENT RENT/SF

1 Two Bed / One Bath 650 $850 $1.31

2 Two Bed / One Bath 650 $700 $1.08

3 Two Bed / One Bath 650 $675 $1.04

4 Two Bed / One Bath 650 $800 $1.23

5 Two Bed / One Bath 650 $700 $1.08

6 Two Bed / One Bath 650 $800 $1.23

7 Two Bed / One Bath 650 $850 $1.31

8 Two Bed / One Bath 650 $900 $1.38

9 One Bed / One Bath 500 $500 $1.00

10 One Bed / One Bath 500 $700 $1.40

TOTAL 6,200 $7,475

AVERAGE 620 $748 $1.21


CURRENT PRO FORMA

MONTHLY INCOME

Total Monthly Scheduled Rent $7,475 $8,600

Scheduled Annual Potential Income $95,159 $108,659

Less Physical Vacancy ($4,758) 5.0% ($5,433) 5.0%

Effective Gross Income $90,401 $103,226

EXPENSES

Real Estate Taxes $4,070 $8,684

Insurance $2,592 $2,592

Utilities $12,639 $13,018

Repairs & Maintenance $9,000 $9,000

Reserves $2,500 $2,500

Total Expenses $30,801 $35,794

Expenses Per Unit $3,080 $3,579

Expenses Per Square Foot $4.97 $5.77

NET OPERATING INCOME $59,600 $67,432

PRO FORMA EXPENSE NOTES

REAL ESTATE TAXESBased on current millage rate multiplied by sales price

INSURANCE Based on current

UTILITIESBased on a 3% growth rate of existing utilities

REPAIRS & MAINTENANCE

Based on $900/unit

RESERVES$250 per unit is accumulated to pay for large capital expenditures amortized over years of operations

Income & Expenses


FINANCING

Loan Amount $596,250

Rate 4.200%

Amortization 30

Payment ($2,916)

Annual Debt Service ($34,989)

The above financing terms were obtained in October 2017 and are based on a 5-year term, 30 years amortization. As loan information is time sensitive and subject to market fluctuations, we recommend that you verify quoted terms by contacting a preferred lender of your choice.

Pricing Overview

PRICING

Price $795,000

Down Payment $198,750

Price Per Unit $79,500

Price Per SF $128.23

Current GRM 8.79

Current Cap Rate 7.50%

ANNUALIZED OPERATING DATA CURRENT PROFORMA

Gross Potential Income $95,159 $108,659

Less Physical Vacancy ($4,758) 5.00% ($5,433) 5.00%

Effective Gross Income $90,401 $103,226

Less Expenses ($30,801) 32.37% ($35,794) 32.94%

NET OPERATING INCOME $59,600 $67,432

Less Loan Payments ($34,989) ($34,989)

Pre-Tax Cash Flow $24,611 12.38% $32,442 16.32%

Plus Principal Reduction $10,140 $10,140

TOTAL RETURN BEFORE TAXES $34,751 17.48% $48,583 21.43%


Rent Comparables

04


Port Angeles Triplex226 E 11th Street, Port Angeles

Number of Units 3

Year Built 1923

1

UNIT MIX # UNITS SF CURRENT RENT AVG. RENT $/SF

1 BR / 1 BA 2 700 $750 $750 $1.07

2 BR / 1 BA 1 1,000 $1,150 $1,150 $1.15

AVG 3 800 $883 $1.10

Notes: W/D in unit.

Rozelle Apartments212 W Third Street, Port Angeles

Number of Units 10

Year Built 1955 / 2007


1 BR / 1 BA 2 500 $500 - $700 $600 $1.20

2 BR / 1 BA 8 650 $700 - $900 $800 $1.23

AVG 10 620 $760 $1.23

Notes: This is the subject property.

SUBJECT

PA Duplex214 W 2nd Street, Port Angeles

Number of Units 2

Year Built 1938

2


2 BR / 1 BA 2 700 $925 - $975 $950 $1.36

AVG 2 700 $950 $1.36

Notes: W/D in one unit.

Comparables

Rent Comparables

PA Apartments517 W 8th Street

Number of Units 8

Year Built 1981

3


2 BR / 1 BA 8 800 $700 - $900 $800 $1.00

AVG 8 800 $800 $1.00

Notes: W/D in unit.


Rent Comparables Con’t

4

321

ROZELLE APARTMENTS

Port Angeles

Black Diamond Rd

Hur

rican

e R

idge

Rd

Old

Olym

pic H

wy

Old Olympic Hwy

Pebble Bay Apartments300 S Sunnyside Ave, Sequim

Number of Units 48

Year Built 1972

4


1 BR / 1 BA 10 700 $750 $750 $1.07

2 BR / 1 BA 38 850 $900 $900 $1.06

AVG 48 819 $869 $1.06

Notes: W/D in unit.

N


Disclaimer

The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, current or past tax payments, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Ryan DiniusSenior Vice [email protected]

Sid WarsinskeSenior [email protected]

Kidder Mathews601 Union StreetSuite 4720Seattle, WA 98101206.296.9600 kiddermathews.com

rozelle apartments€¦ · boasts over 200 miles of coastline, a strong commercial and sport...

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